China relaxes some cross-border capital flow curbs - sources

Reuters Staff

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SHANGHAI, April 19 (Reuters) - China’s central bank has relaxed its management of cross-border capital flows put in place just months ago to shore up the yuan currency, and is no longer demanding that banks match outflows with equal inflows, banking sources said on Wednesday.

The first relaxation of the curbs comes as China’s leaders and financial markets feel more confident that pressure on the yuan and the country’s foreign exchange reserves has diminished, thanks largely to a pullback in the surging U.S. dollar.

The policy shift started last week, the sources said. (Reporting by Shanghai Newsroom; Writing by John Ruwitch; Editing by Kim Coghill)